It might be that there is some setting on the text character panel that is causing problems. Have you tried resetting the Type tool? (Do this by opening the character panel - through the windows panel if necessary - then click on the menu button in the character panel and select reset character in the menu - you can repeat this with the paragraph panel as well).
As a last resort you can try resetting all of your tools. Hold down Ctrl + Alt + Shift (Cmd + Shift + Option on the Mac) whilst starting Photoshop and then answer "yes" to the question "Do you want to reset your preferences". Be aware that this method resets ALL of your preference.
I prefer to not do a general reset. I have opend the character panel but do not see a "menu" button; however all the parameters appear to me to be acceptable. Incidentally, when I reoped PS the first letter only of my text was visible.
Type something and OK it. Then either double click the type layer, or use Free Transform on the type layer. Either will highlight the text showing its size etc.
but do not see a "menu" button;
The drop down in top right corner of panel
however all the parameters appear to me to be acceptable.
And yet you have not text, could it possibly be that you are wrong?